THE introduction of the Consumer Credit Act 2025 (CCA) and the establishment of the Consumer Credit Oversight Board (CCOB) are positive and necessary developments to bring greater clarity, accountability, and public confidence to the sector.
Rohan Jayaratnam, President of the Association of Malaysian Credit Recovery Agencies (AMCRA), said the Act now mandates that only registered and licensed debt recovery agencies may carry out debt collection activities, while explicitly prohibiting practices such as harassment, threats, intimidation, and public shaming.
"These measures are intended to safeguard consumers and ensure that credit recovery activities are conducted professionally and ethically.
"The formation of AMCRA marks a significant step forward for Malaysia’s credit recovery industry, as agencies move to align more closely with the country’s new consumer credit regulatory framework under the CCA," he said.
He pointed out that AMCRA was formed to serve as a unified platform for licensed agencies to engage constructively with regulators and policymakers.
“AMCRA was established to give the industry a coordinated voice and to facilitate meaningful engagement with the CCOB. Our objective is not to resist regulation, but to support it by ensuring that industry realities are understood, best practices are upheld, and ethical standards are consistently applied,” Rohan said.
The credit recovery sector employs thousands of Malaysians and forms a critical link between creditors and borrowers, and industry leaders believe that clearer rules and proper oversight will ultimately benefit not only financial institutions but also debtors and the wider public by promoting fair treatment, reducing misconduct, and improving trust.
AMCRA deputy president Datuk Mohd Shahrom, meanwhile, said the new framework presents an opportunity to professionalise the sector further.
“A well-regulated environment encourages responsible behaviour and raises standards across the board.
“When agencies operate within clear guidelines, it protects consumers, supports creditors, and strengthens the credibility of the entire industry,” he said.
The association will formally introduce its mandate, objectives, and industry commitments during its official launch this Thursday. – January 27, 2026
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